Biotech Values

[mcbio]

I actually like the buy on the bad news strategy some of my best returns have come that way though the window varies usually being able to act quick (having a descent understanding of the company before hand) is a key (at least if your cheap like me ). Two that come to mind are MNTA and TKT I can't take credit for either though. In the MNTA case I at least was a little familiar with the company and thanks to Dew's post explaining their was no "approvable" option along with having enough time to do some added DD before the stock recovered. TKT I had a great return on (but I can't take any of the credit a great biotech investor got me in on it!) was right after a disaster where the (former) CEO mislead about getting approved for a Fabry drug. I can still vaguely recall parts of that conference call where one of the analysts (maybe Jenniffer Chao) was yelling at the CEO something to the effect that you lied to us.

Very interesting. It is my preferred strategy, but I also don't want to sit around and keep waiting around for the perfect opportunity while other very nice opportunities pass me by. I will tell you that if MNTA craters from something like a TEVA generic Lovenox approval, I would be ready to do some serious dollar-cost averaging. Also, one thing that I have thought about with VRUS is to sit and wait and see if there's a negative development with RG7128, their lead nuke, since it's really just the 2nd/3rd gen nukes that I think are the key value drivers for the company. But, VRUS continues to report good news with RG7128 and I don't think the next read on data will be until 2012 when Phase 3 results should be out. I think the BMY combo data trial is likely to be out before then and, if positive, should likely have a very positive effect on the stock. So, I don't think it's worth it to wait around and see if there's a negative development with RG7128.